8 Common Mistakes to Avoid to Ensure Your Home Purchase is a Positive Experience
#1 – Not Being Completely Clear About Your Financing
The most common mistake occurs before you even begin the home search. It is a BIG mistake not to be pre-qualified by your bank or a mortgage specialist. This will help you define the price range you can afford.
Some buyers feel that they are very aware of their financial situation. However, a qualified mortgage specialist will gather your information in complete confidence and put that information into perspective for you. Many times your mortgage specialist will find hidden opportunities that you may not be aware of.
Even more importantly is to be sure that your mortgage specialist and your agent work closely together. This will optimize the results of your home buying adventure.
#2 – Choosing a Realtor Who is Not Committed
Contrary to popular assumption, home buying is much more than just searching for a home and picking a nice one. You need a qualified agent to guide you, manage the process, and assist you in making critical decisions.. so choose WISELY. Choose an agent that you are sure will be dedicated to your best interests before, during, and after the sale. Choosing the right agent helps to ensure that your buying experience will be positive and rewarding.
#3 – Caring Too Much About Aesthetics
Your agent should be happy to show you as many homes as you would like, but remember.. beauty is only skin-deep (and often totally fixable!) when it comes to real estate.
Many buyers make the common mistake of getting caught up in how a house looks RIGHT NOW. Maybe it appears dirty, outdated, or in need of small repairs and you’re tempted to run. You might think to yourself “That’s REALLY Going to Cost Me”. But wait.. maybe not. The cost to make a home “like new” is often easy to negotiate and may be much more affordable than you assume.
The important thing to remember here is that many homes have great potential if you’re willing to see past a stain in the carpet or outdated cabinetry in the bathroom.
#4 – Waiting Too Long
Have you found the perfect home? Don’t wait. Taking too long to make an offer (especially in a competitive market) is not a good idea. If too much time passes between a buyer viewing a home and making an offer, the seller may not take you as seriously as another interested party who expressed interest quickly.
#5 – Not Thinking Ahead
Imagine your life 3, 5, or even 10 years from now. What does it look like? Will this house meet your needs today and for the future?
Consider aging, children, lifestyle, health, and economics. How long do you see yourself living in the same house and how long will it fit your ever changing needs? Even though you might love one location while your children are young, what about when they are older? Is your home near a high school? This is an important aspect to consider.
#6 – Miscalculating Costs
There are many costs involved with purchasing a home which are unrelated to the actual purchase price. Your agent and/or mortgage specialist should assist you in calculating all the costs involved. You need to know what cash you need available when it comes time to close the deal.
Also consider your own wants and needs. Will you want new furniture or appliances? Maybe you’ll want to paint the interior to your tastes before moving in. It is important to be honest with yourself and budget accordingly so you are not scrambling at the last minute.
#7 – Ignoring What the Seller Wants
When shopping the market for your dream home, it’s easy to see the house as just a product you’re buying. The problem here is that real estate isn’t like other business deals. You’re buying from another person who has to CHOOSE the buyer. All sellers are motivated for different reasons and some of them are not entirely driven by money.
For example, some sellers may be very attached and want their first home to go to someone who will love it as much as they did. It is important that your realtor is gathering information about the sellers motivation. They will use that information to help you build the best offer and if you ignore this it could very well hurt your chances of ending up in your dream home.
#8 – Talking to The Other Team
First of all, the listing agent is NOT your enemy. However, talking to him or her without your agent present is never a good idea, even if you think you’re just be friendly and helping to seal the deal.
Often times buyers communicate with the other agent and divulge information that will harm them. Revealing too much to the other side doesn’t exactly set the stage for a tough negotiation with the seller. Even if you don’t think you’re saying anything that will hurt you.. you just never really know. It’s YOUR agents job to get you the best deal and the LISTING agent’s job to get the most money for the seller. Just don’t do it.